Today, Asian Development Bank President Masatsugu Asakawa and World Bank Group President Ajay Banga signed a groundbreaking new co-financing partnership.
The Full Mutual Reliance Framework (FMRF), the first of its kind among multilateral development banks (MDBs), will generate efficiencies, streamline implementation, deliver faster results, and ultimately, achieve better outcomes for borrowing countries.
This partnership responds to the needs of client countries in the Asia Pacific region who are demanding more rapid, efficient and effective development financing, and more seamless coordination by MDBs. It also responds to G20 Leaders’ call for MDBs to work more effectively as a system.
With this new partnership, one institution will act as the “Lead Lender,” handling all aspects of project design, preparation, appraisal, supervision and evaluation for both lenders. The other institution (the Trail Lender) may participate in knowledge sharing and limited support but without decision-making or fiduciary responsibilities. The closely aligned policies of the two lenders allow for mutual reliance without compromising standards.
This partnership is expected to serve as a model for deeper collaboration among other MDBs and help address pressing development needs while fostering knowledge sharing and innovation.
As the institutions move towards implementation, they will continue to engage with their respective Boards, borrowers, and other stakeholders.
